Correlation Between Wells Fargo and Sentinel International
Can any of the company-specific risk be diversified away by investing in both Wells Fargo and Sentinel International at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Wells Fargo and Sentinel International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Wells Fargo Global and Sentinel International Equity, you can compare the effects of market volatilities on Wells Fargo and Sentinel International and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Wells Fargo with a short position of Sentinel International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wells Fargo and Sentinel International.
Diversification Opportunities for Wells Fargo and Sentinel International
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Wells and Sentinel is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Wells Fargo Global and Sentinel International Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sentinel International and Wells Fargo is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Wells Fargo Global are associated (or correlated) with Sentinel International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sentinel International has no effect on the direction of Wells Fargo i.e., Wells Fargo and Sentinel International go up and down completely randomly.
Pair Corralation between Wells Fargo and Sentinel International
Assuming the 90 days horizon Wells Fargo Global is expected to under-perform the Sentinel International. In addition to that, Wells Fargo is 1.09 times more volatile than Sentinel International Equity. It trades about -0.06 of its total potential returns per unit of risk. Sentinel International Equity is currently generating about 0.2 per unit of volatility. If you would invest 1,857 in Sentinel International Equity on August 30, 2025 and sell it today you would earn a total of 175.00 from holding Sentinel International Equity or generate 9.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 92.06% |
| Values | Daily Returns |
Wells Fargo Global vs. Sentinel International Equity
Performance |
| Timeline |
| Wells Fargo Global |
Risk-Adjusted Performance
Weakest
Weak | Strong |
| Sentinel International |
Wells Fargo and Sentinel International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wells Fargo and Sentinel International
The main advantage of trading using opposite Wells Fargo and Sentinel International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wells Fargo position performs unexpectedly, Sentinel International can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Sentinel International will offset losses from the drop in Sentinel International's long position.| Wells Fargo vs. Altegris Futures Evolution | Wells Fargo vs. Goldman Sachs Managed | Wells Fargo vs. Lincoln Inflation Plus | Wells Fargo vs. The Hartford Inflation |
| Sentinel International vs. American Funds Retirement | Sentinel International vs. T Rowe Price | Sentinel International vs. T Rowe Price | Sentinel International vs. T Rowe Price |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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